European migration exhibits a bias towards low-skilled workers, whereas the US attracts the majority of the world’s skilled migrants. At the same time, the welfare system in Europe is more generous than the one in the US. This column describes an analytical framework that can explain the existence of these differences. Whether a group (union) of member states competes or coordinates its policies has an impact on the skill composition of its migrants and the generosity of the welfare system.

Europe is moving towards immigration policies that favour the acceptance of highly skilled applicants. This column summarises research showing that such policies may have some effect but cautions that there are limits to the power of selectivity.